Toyota returns to profit growth on strong US demand for hybrids

{"text":[[{"start":7.62,"text":"Toyota shares soared by the most in almost four decades on Thursday after the world’s biggest carmaker raised its annual profit outlook on the back of the weak yen and strong US demand for hybrid vehicles."}],[{"start":20.04,"text":"The Japanese group posted its first rise in profits in six quarters as operating income jumped 34 per cent to ¥1.13tn ($7.1bn) in the three months to September 30."}],[{"start":35.06,"text":"Toyota increased its full-year profit forecast by ¥500bn to ¥3.9tn and raised its share buyback to ¥1.3tn, up from a previous plan of ¥1tn."}],[{"start":46.88,"text":"Shares rallied almost 17 per cent, erasing losses for the year, building on hopes that US tariffs on car imports could be cut following the outcome of the midterm elections."}],[{"start":57.2,"text":"That was the biggest one-day jump since October 1987 when markets rebounded after the Black Monday stock market crash."}],[{"start":null,"text":"

"}],[{"start":64.16,"text":"Toyota sales dipped 3.4 per cent in the first nine months of the year to 7.5mn units versus the previous year due to a brutal downturn in the Chinese car market."}],[{"start":74.8,"text":"However, North American sales rose by 1.1 per cent in the first nine months and the region’s operating profit turned positive for the first time since US President Donald Trump introduced tariffs in his second term."}],[{"start":87.32,"text":"Meanwhile, Toyota vowed to use the most competitive component suppliers in China regardless of nationality in a sign it was serious about fighting back against Chinese EV rivals."}],[{"start":97.64,"text":"“In procurement, we select the most suitable parts and technologies based on competitiveness, regardless of a supplier’s nationality or corporate group,” said Yoichi Miyazaki, executive vice-president."}],[{"start":109.48,"text":"Toyota also revealed new strategies to better compete in North America, China and the global south, led by southeast Asia."}],[{"start":116.68,"text":"In the US, it plans to expand domestic hybrid vehicle production and introduce robots to tackle rising labour costs."}],[{"start":123.4,"text":"The carmaker said it would bring learnings from China to south-east Asian and Japanese suppliers, raising the prospect that it could seek to incorporate more Chinese suppliers into its overseas supply chains."}],[{"start":133.98,"text":"One of Toyota’s key moves for the global south is consolidating its smaller cars on to a single vehicle architecture to gain economies of scale to compete with Chinese rivals."}],[{"start":143.28,"text":"Toyota’s rise and Japan’s broader automotive industry have been underpinned by the keiretsu system under which producers and their suppliers were loyal to one another through interlocking shareholdings, intragroup financing and close management ties."}],[{"start":158.44,"text":"The reforms at Toyota add to the increasing signs that Japan’s carmakers are telling suppliers to fight or die by proving that they can compete against lower-cost Chinese peers."}],[{"start":169.72,"text":"Toyota also confirmed on Thursday its plans to establish a robotics business to accelerate automation of its manufacturing lines and create a new revenue stream beyond cars."}],[{"start":184.72,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1793863173_6131.mp3"}